Bill Text: NY S08075 | 2015-2016 | General Assembly | Introduced

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Bill Title: Taxes aviation fuel businesses for all kero-jet fuel they bring into the state.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2016-06-10 - REFERRED TO RULES [S08075 Detail]

Download: New_York-2015-S08075-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8075
                    IN SENATE
                                      June 10, 2016
                                       ___________
        Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        AN ACT to amend the tax law, in relation to taxation  of  aviation  fuel
          businesses; and to repeal subdivision (f) of section 301-e of such law
          relating thereto
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivisions (c), (d) and (e) of section 301-e of  the  tax
     2  law, subdivision (c) as amended by section 25 of part K of chapter 61 of
     3  the  laws of 2011, subdivision (d) as amended by chapter 309 of the laws
     4  of 1996, subdivision (e) as added by chapter 190 of the laws of 1990 and
     5  paragraph 2 of subdivision (e) as amended by section  1  of  part  J  of
     6  chapter 60 of the laws of 2004, are amended to read as follows:
     7    (c)  Kero-jet  fuel  component.  The  kero-jet fuel component shall be
     8  determined by multiplying the kero-jet fuel rate  times  the  number  of
     9  gallons of (1) kero-jet fuel imported or caused to be imported into this
    10  state  by an aviation fuel business and consumed [in this state] by such
    11  business in the operation of its aircraft; and (2) kero-jet fuel,  which
    12  has  not  been  previously included in the measure of the tax imposed by
    13  this section, (i) which is sold in this state by an aviation fuel  busi-
    14  ness  to  persons  other  than  those  registered  under this article as
    15  aviation fuel businesses or (ii) which is consumed in this state  by  an
    16  aviation  fuel  business in the operation of its aircraft. Provided that
    17  importation of kero-jet fuel in the fuel  tanks  of  aircraft  shall  be
    18  importation  for  the  purposes of this section. The basic kero-jet fuel
    19  rate shall be six and eight-tenths cents per gallon. The rate  shall  be
    20  adjusted at the same time as the rates of the components of the petrole-
    21  um  business tax imposed by section three hundred one-a of this article,
    22  and the method of making adjustments to the kero-jet fuel rate shall  be
    23  the same as the method used for such rates.
    24    (d)  (1)  An aviation fuel business shall be entitled to reimbursement
    25  of the tax imposed by this section, less any credit  allowed  or  refund
    26  granted,  with  respect to aviation gasoline purchased in this state and
    27  consumed by such business exclusively as aviation fuel in the  operation
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15766-01-6
        S. 8075                             2
     1  of  its  aircraft  where  such aviation gasoline is not consumed in this
     2  state, provided that the amount of such tax, less any credit or  refund,
     3  has  been absorbed by such aviation fuel business. Provided, further, an
     4  aviation  fuel  business  which has imported aviation gasoline into this
     5  state and consumed such  aviation  gasoline  in  the  operation  of  its
     6  aircraft  where  a  portion of such aviation gasoline is not consumed in
     7  this state shall be allowed a credit for such gallonage not consumed  in
     8  this state in computing the tax imposed by such section.
     9    (2)  [An  aviation fuel business shall be entitled to reimbursement of
    10  the tax imposed by this section with respect to kero-jet fuel  purchased
    11  in this state and consumed by such business exclusively as aviation fuel
    12  in  the  operation  of  its  aircraft  where  such  kero-jet fuel is not
    13  consumed in this state, provided that the entire amount of such tax  has
    14  been absorbed by such aviation fuel business.
    15    (3)]  Any  purchaser  of  aviation gasoline in this state who consumes
    16  such aviation gasoline exclusively as aviation fuel in the operation  of
    17  its  aircraft  shall  be  entitled to a partial reimbursement of the tax
    18  imposed by this section with respect  to  aviation  gasoline  which  was
    19  purchased  by  such  purchaser  and  upon  which  such purchaser paid or
    20  absorbed the full amount of the tax imposed by this  section  (where  no
    21  partial  credit or refund under paragraph two of subdivision (b) of this
    22  section was provided with respect to such aviation gasoline) where:  (i)
    23  such  purchaser purchases the aviation gasoline from a fixed base opera-
    24  tor which qualifies as a retail seller of aviation gasoline but  is  not
    25  so  registered  under  article  twelve-A  of  this chapter, or (ii) such
    26  purchaser purchases the aviation gasoline in bulk from a distributor  of
    27  motor  fuel registered under article twelve-A of this chapter where such
    28  distributor delivers such aviation gasoline directly into a bulk storage
    29  facility of the purchaser which is at a fixed and permanent place at  an
    30  airport  within  this state and is used solely to fill the fuel tanks of
    31  its aircraft for use in  the  operations  thereof.  The  amount  of  the
    32  reimbursement  allowable  under  this  paragraph  shall  be equal to the
    33  amount of the partial credit or refund allowable under paragraph two  of
    34  subdivision (b) of this section.
    35    [(4)]  (3)  The  commissioner  shall require such documentary proof to
    36  qualify for any credit, refund or reimbursement of  tax  provided  under
    37  this subdivision as the commissioner deems appropriate.
    38    (e) All the provisions of this article relating to the administration,
    39  collection  and  disposition of the tax imposed on petroleum businesses,
    40  including the registration provisions of section three  hundred  two  of
    41  this  article applicable to residual petroleum product businesses, shall
    42  apply to the tax imposed by this section and the registration under this
    43  article of aviation fuel businesses with such  modification  as  may  be
    44  necessary  in  order to adapt the language of such provisions to the tax
    45  imposed by this section. When reference in this article is made to  "the
    46  tax  imposed  under  this  article" or where words of similar import are
    47  used, unless the context indicates otherwise, such reference shall be to
    48  the tax imposed under section three hundred one-a of  this  article  and
    49  this  section.  The  tax  imposed  by this section shall be administered
    50  jointly in conjunction with, and as a part of, the tax imposed on petro-
    51  leum businesses as if the provisions of subdivision (a) of this section,
    52  imposing the tax under this section, were made a part of the  imposition
    53  provisions  of section three hundred one-a, except where contrary or not
    54  applicable to or inconsistent  with  the  provisions  of  this  section.
    55  Provided, further, for the purpose of this section:
        S. 8075                             3
     1    (1)  the  term  "aviation fuel business" shall mean a "petroleum busi-
     2  ness" as described in paragraph one or paragraph two of subdivision  (b)
     3  of  section  three  hundred  of  this article except that the activities
     4  described therein shall separately relate  to  aviation  gasoline  (such
     5  paragraph  one)  and  kero-jet  fuel  (such paragraph two) and such term
     6  shall also include every corporation or unincorporated business  import-
     7  ing  or  causing  to  be  imported  aviation  fuel  into this state [for
     8  consumption by it in this state] by bringing  such  aviation  fuel  into
     9  this  state  in aircraft fuel tanks which connect to the engines propel-
    10  ling such aircraft.
    11    (2) [kero-jet fuel and] aviation gasoline consumed in this state shall
    12  be presumed to mean all such fuel consumed during takeoffs  from  points
    13  in this state;
    14    (3) where the commissioner [of taxation and finance] decides that with
    15  respect to a certain petroleum business any of the methods prescribed in
    16  paragraph  two  of  this subdivision do not fairly and equitably reflect
    17  fuel consumed in this state, the commissioner shall prescribe methods of
    18  attribution which fairly and equitably reflect  fuel  consumed  in  this
    19  state.
    20    (4)  "aviation  fuel"  means  kero-jet  fuel and aviation gasoline (as
    21  described in paragraph three of subdivision (a) of section three hundred
    22  one-b of this article). Provided, further the term  kero-jet  shall  not
    23  include  naphtha based aviation fuel refined and used solely for propel-
    24  ling military jet airplanes of the United States Armed Forces.
    25    § 2. Subdivision (f) of section 301-e of the tax law is REPEALED.
    26    § 3. This act shall take effect on the first of January next  succeed-
    27  ing the date on which it shall have become a law.